Restructuring and Severance Charges

The Company incurred total restructuring and severance costs of $0.7 million and $0.1 million for the second quarter of fiscal 2019 and 2018, respectively, and $0.8 million and $0.6 million for the six months ended April 28, 2019 and April 29, 2018, respectively.

2018 Restructuring Plan

On October 16, 2018, the Company approved a restructuring plan (the “2018 Plan”) based on an organizational and process redesign intended to optimize the Company’s strategic growth initiatives and overall business performance. In connection with the 2018 Plan, the Company incurred restructuring charges comprised of severance and benefit costs and facility and lease termination costs. The 2018 Plan is expected to be completed by the Company's fiscal year end on November 3, 2019. The Company incurred restructuring and severance costs of $0.5 million for the second quarter 2019. The total costs since inception through the second quarter of fiscal 2019 are approximately $4.8 million, consisting of $1.0 million in North American Staffing, $0.3 million in International Staffing and $3.5 million in Corporate and Other. As of April 28, 2019, the Company anticipates payments of $1.1 million and $0.6 million will be made in fiscal 2019 and 2020, respectively. The remaining $1.3 million related to facility and lease termination costs will be paid through December 2025.

Change in Executive Management

Effective June 6, 2018, Mr. Dean departed from his role as President and Chief Executive Officer of the Company and is no longer a member of the Board of Directors of the Company. The Company and Mr. Dean subsequently executed a separation agreement, effective June 29, 2018. The Company incurred related severance costs of $2.6 million in the third quarter of fiscal 2018, which is payable over a period of 24 months.

Exit of Customer Care Solutions Business

In the third quarter of fiscal 2019, the Company will exit its customer care solutions business, which is currently reported as a part of the Corporate and Other category. This exit will enable the Company to further strengthen its focus on its core staffing business and align its resources to streamline operations, improve cost competitiveness and increase profitability. As a result of this exit, the Company incurred severance costs of $0.2 million during the second quarter of fiscal 2019.

Other Restructuring Costs

During the second quarter of fiscal 2018, there were other restructuring actions taken by the Company as part of its continued efforts to reduce costs and achieve operational efficiency. The Company recorded severance costs of $0.1 million in the second quarter of fiscal 2018 primarily resulting from the elimination of certain positions.

Accrued restructuring and severance costs are included in Accrued compensation and Accrued insurance and other in the Consolidated Balance Sheets. Activity for the first six months of fiscal 2019 is summarized as follows (in thousands):



	April 28, 2019
Balance, beginning of year	$	5,702
Charged to expense	783
Cash payments	(2,295		)
Ending Balance	$	4,190

The remaining balance at April 28, 2019 of $4.2 million, primarily related to Corporate and Other, includes $2.5 million related to the cost reduction plan implemented in fiscal 2018 and $1.4 million related to the change in executive management.